Correlation Between Aurora Mobile and Nuvei Corp
Can any of the company-specific risk be diversified away by investing in both Aurora Mobile and Nuvei Corp at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Aurora Mobile and Nuvei Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Mobile and Nuvei Corp, you can compare the effects of market volatilities on Aurora Mobile and Nuvei Corp and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Aurora Mobile with a short position of Nuvei Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Mobile and Nuvei Corp.
Diversification Opportunities for Aurora Mobile and Nuvei Corp
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aurora and Nuvei is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Mobile and Nuvei Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuvei Corp and Aurora Mobile is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Aurora Mobile are associated (or correlated) with Nuvei Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuvei Corp has no effect on the direction of Aurora Mobile i.e., Aurora Mobile and Nuvei Corp go up and down completely randomly.
Pair Corralation between Aurora Mobile and Nuvei Corp
Allowing for the 90-day total investment horizon Aurora Mobile is expected to generate 34.66 times more return on investment than Nuvei Corp. However, Aurora Mobile is 34.66 times more volatile than Nuvei Corp. It trades about 0.13 of its potential returns per unit of risk. Nuvei Corp is currently generating about 0.23 per unit of risk. If you would invest 313.00 in Aurora Mobile on September 1, 2024 and sell it today you would earn a total of 505.00 from holding Aurora Mobile or generate 161.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Aurora Mobile vs. Nuvei Corp
Performance |
| Timeline |
| Aurora Mobile |
| Nuvei Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Aurora Mobile and Nuvei Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Mobile and Nuvei Corp
The main advantage of trading using opposite Aurora Mobile and Nuvei Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Mobile position performs unexpectedly, Nuvei Corp can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nuvei Corp will offset losses from the drop in Nuvei Corp's long position.| Aurora Mobile vs. Palo Alto Networks | Aurora Mobile vs. GigaCloud Technology Class | Aurora Mobile vs. Pagaya Technologies | Aurora Mobile vs. Telos Corp |
| Nuvei Corp vs. Robinhood Markets | Nuvei Corp vs. Palantir Technologies Class | Nuvei Corp vs. GigaCloud Technology Class | Nuvei Corp vs. Crowdstrike Holdings |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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